If your transfer case is in neutral would you not be going no where if you gave it gas while in gear (i.e. first gear or drive if it is an auto)? I don't know, I have never tried it. I just switch from 4L to 4H when need be.

As for finding the transfer case it is under the truck. You can follow your drive shaft from the front end. The drive shaft heading to the front diff comes off the transfer case. This is the way it is on mine.